Industrial Relations

Employers' Associations

There are many employer trade associations and industrial associations in Taiwan. The most influential employer representative organizations are the Chinese National Federation of Industries (CNFI) and the General Chamber of Commerce of the Republic of China (GCOC).

The CNFI is a nonprofit organization consisting of nearly 150 member associations in their respective manufacturing industry areas and represents in total more than 80,000 industrial companies in Taiwan. The CNFI can influence the enactment and amendment of labor laws, as well as the formulation of government labor policies. The main functions of the GCOC are to promote international/national trade and commerce and networking among members, lobby for law changes, assist with government policy implementation and research, foster connections with other countries, and collect data on international markets for GCOC members.

The ECCT is the principal organization in Taiwan representing companies with European business interests. Through lobbying government and formulating position papers, the ECCT ensures that the European agenda remains on the list of priorities for the Taiwanese government. Additionally, the ECCT’s close working relationship with the European Commission adds strength to Taiwan’s voice in Europe. Although primarily a business-orientated organization, the ECCT also maintains an important cultural and social focus for the European community in Taiwan.

The American Chamber of Commerce in Taipei (AmCham) fosters the development of commerce and trade between the United States and Taiwan. The organization encourages local governments to adopt and implement the highest possible international business standards. The organization’s objectives are to represent AmCham’s diverse membership on issues of common interest, provide a forum for networking and access to information, serve as a trusted and influential advocate to the government, and encourage civic-minded participation in the greater Taiwan community.

The Japanese Chamber of Commerce and Industry in Taipei is committed to promoting trade and investment between Taiwan and Japan, and playing a very important role in economic and commercial development. The Japanese Chamber of Commerce and Industry offers its members with political and commercial information through monthly and yearly publications, strengthens the communication for the Japanese enterprises in Taiwan, and proposes investment and business operation recommendations for the government on Japanese corporations’ behalf.

Labor Unions

The impact of labor unions on labor relations is a crucial factor that can affect the decision of a potential investor. There are three categories of labor unions in Taiwan: corporate, industrial, and professional labor unions. A confederated labor union also can be set up if needed. Union registration is required in Taiwan under the Labor Union Act (LUA).

According to statistical data from the Executive Yuan, there are 976 corporate unions with about 589,000 members. Although such unions represent members in negotiations with employers to protect the rights of members, only 83 unions have signed contracts with employers for group agreements, thus demonstrating that group negotiation is not yet a standard practice in Taiwan. There are 4,016 unions whose members do not have definite employers and occupational unions; these unions have about 2.799 million members. These unions generally assist members with enrolment in the social security system. Overall, labor relations in Taiwan are harmonious, but formal group discussions inactive in Taiwan.

Labor-Management Conferences

To increase cooperation between employers and employees and improve work efficiency, the LSA stipulates that a "labor-management conference" be established by any company that has 30 or more employees. The conference is a joint labor-management consultation system, comprised of an equal number of representatives from labor and management. The conference addresses issues such as the harmonization of labor relations and cooperation between labor and management, labor conditions, the planning of labor welfare, and increasing labor productivity. There were 38,436 enterprises that held the conference by the end of 2012.

Collective Bargaining

Bargaining between labor and management generally can be divided into collective agreement and general negotiations. The Collective Agreement Act (CAA) clearly outlines the negotiation mechanism for collective bargaining to protect labor's interest in the negotiations. If a proposal is refused, the union may submit an application for arbitration of proposed bargaining to the Committee for Dispute Resolution for Unfair Labor Practices under the CLA. After the CAA was amended on May 1, 2011, enterprises that signed group contracts increased from 43 enterprises in 2010 to 83 enterprises in 2012.

Settlement and Mediation Proceedings

Advisory, Conciliation, and Arbitration Services

Labor disputes in Taiwan fall into the following categories: wages, labor contracts, occupational hazards, retirement, labor insurance, welfare benefits, and management. Most disputes revolved around an issue of rights. Means to seek relief included civil litigation and Alternative Dispute Resolution (ADR), both offered by local authorities. The manufacturing industry was involved in the bulk of the disputes, followed by the wholesale/retail industry, other services industries, and the restaurant/hotel industry.

Conciliation and mediation are effective methods for resolving labor disputes. Disputes usually occur when employers do not follow the legal requirements with regards to the payment of retirement benefits, severance pay, or wages. Most petitions and protests that government authorities encounter are a result of such disputes.

Labor disputes in Taiwan by types and number of people involved, 2002-October 2012

Year / Types of Dispute

Total Cases

People Involved

2002

14,017

(9,392)

105,714

(97,436)

2003

12,204

(6,892)

28,821

(20,815)

2004

10,838

(5,827)

32,478

(25,932)

2005

14,256

(8,173)

85,544

(77,642)

2006

15,464

(10,105)

81,639

(74,811)

2007

19,729

(10,188)

121,563

(109,242)

2008

24,540

(11,074)

65,274

(48,182)

2009

30,385

(15,104)

68,649

(48,954)

2010

23,865

(11,565)

42,934

(28,367)

2011

22,629

(11,767)

44,022

(30,941)

2012

23,223

(11,248)

41,255

(26,347)

Rights issues

Wages

10,353

(4,152)

Labor contract

1,544

(1,014)

Mass dismissal

5,758

(2,783)

Retirement

904

(478)

Occupational hazard

1,693

(1,099)

Violation of union regulation

13

(13)

Violation of Art.35 of Labor Union Law

392

(216)

Violation of other rights

2,430

(1,374)

Adjustments issues

136

119

Wage adjustment

36

(33)

Working year calculation

2

(1)

Working hours adjustment

61

(61)

Other issues and adjustments

37

(24)

Source: The Department of Labor-Management Relations, CLA.

Notes:

Numbers in the parentheses ( ) represent the dispute cases that the Central Labor Authority is involved.